Keysight Technologies Stock: Is KEYS Underperforming the Technology Sector?

Santa Rosa, California-based Keysight Technologies, Inc. KEYS is a provider of electronic design and test solutions to various industries including energy, semiconductor, electronics, defense, and more. With a market cap of $28.9 billion, Keysight operates through Communications Solutions and Electronic Industrial Solutions segments.

Companies worth $10 billion or more are generally described as "large-cap stocks," Keysight Technologies fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the scientific & technical instruments industry. Keysight’s operations span the Americas, EMEA, and the Indo-Pacific.

The stock recently touched its 52-week high of $175.39 on Nov. 25 and is currently trading 5.1% below that peak. KEYS stock prices have surged 11% over the past three months outpacing the Technology Select Sector SPDR Fund’s XLK 8.4% gains over the same time frame.

However, over the longer term, Keysight’s performance has remained grim. KEYS stock has gained 4.7% on a YTD basis and 9.3% over the past 52 weeks, significantly lagging behind XLK’s 24.2% gains in 2024 and 25% returns over the past year.

To confirm the recent upturn, KEYS has traded above its 200-day and 50-day moving averages since late August with some fluctuations.

Keysight Technologies’ stock prices soared 8.8% in the trading session after the release of its better-than-expected Q4 results on Nov. 19. Given the market conditions were as per its expectations, Keysight was able to outperform its guidance and market’s expectations. Its revenues of $1.3 billion surpassed analysts’ projections by 2.7%, while its orders grew by a notable 1.4% year-over-year to $1.35 billion. Meanwhile, the company’s adjusted EPS of $1.65, also surpassed Wall Street’s expectations by a significant margin, bolstering investor confidence.

Furthermore, the company remains confident in its differentiated portfolio, deep customer engagement, and the accelerating pace of technological innovations to drive growth in the coming quarters.

However, Keysight has underperformed its peer Trimble Inc.’s TRMB 38.3% gains on a YTD basis and a 49.5% surge over the past year.

Nevertheless, analysts remain optimistic about Keysight’s prospects. The stock has a consensus “Strong Buy” rating among the 11 analysts covering it. The mean price target of $178.50 represents a 7.2% premium to current price levels.

On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

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